2023 Marcum National Manufacturing Survey Report

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THE 2023 MARCUM NATIONAL MANUFACTURING SURVEY

Article Headline Proactive Approach Vital to Logistics Success

Body Content Far too many manufacturing executives only notice logistics when something goes wrong. The COVID-driven supply chain agony of the past few years has put the supply chain on the front burner for the first time for many companies. It should stay there for companies that want to boost the bottom line by actively and consistently improving their supply chains. Scores of emerging trends are creating tremendous opportunities for better customer experiences, more loyalty, more savings, and greater efficiency. Savvy executives know that great logistics is a competitive differentiator that keeps customers happy. They constantly evaluate their operations and those of their competition to remain in the best position. WHAT LOGISTICS ENCOMPASSES Logistics is a simple word for processes that can be quite complex. It involves front-end systems like sales forecasting, demand planning, sourcing, tracking products, order management, and more. The back end of logistics includes movement between facilities, inventory management, delivery, claims management, and reverse logistics (returns). Ideally, every aspect of the process maximizes efficiency and creates a simple, seamless process for both employees and customers. WHY IT MATTERS Most manufacturing company leaders don’t fully appreciate the need for agility in logistics. Details matter a lot and small changes add up quickly. A great logistics setup ensures that the right inventory is in the right place at the right time. It reduces cycle times to make it easier for customers to buy. It ensures you’re getting the

best market pricing for all inputs. It provides real-time visibility into all aspects of the process, something which most customers expect nowadays. Finally, it allows companies to view, measure, and understand how logistics affects their margins, valuations, and competitive positions. BEST PRACTICES Many small- and mid-sized manufacturing companies have a disconnect between the C-suite and logistics functions. Few logistics professionals have a seat at the executive table, so communication is sparse and all-too-often focused on problems and pain points rather than improvement opportunities and ways to expand customer relationships and increase value. The best companies focus on several key things: • The ideal customer experience – They put themselves in the customer’s shoes and strive to create the perfect order (the right product, at the right time, for the right cost, and hitting the right destination). This creates loyal and reliable customer relationships. • Focus on the bottom line – By benchmarking, constantly improving, and understanding competition, companies can gain and retain an edge. • C-suite involvement – Leadership

understands what tools are available and how to leverage them for maximum benefit. This could even include an official logistics council that has outside experts providing insight, goals, and steps for continuous improvement.